SodaStream Rallies After Fizzle From Secondary Entry

Investor’s Business Daily reports on the Israeli company, SodaStream. SodaStream is becoming more well known in the U.S. after it’s recent advertisement in last week’s Superbowl.

When a stock triggers a sell rule, don’t just forget about it and move on. Sometimes it can still go on to become a winner. SodaStream International(SODA) may be in that boat.


The stock cleared a 50.08 buy point from a three-weeks-tight pattern Jan. 22, but fell nearly 8% below that trigger seven trading sessions later. Losses need to be cut at 7% to 8% in order to prevent serious damage.


SodaStream has now climbed back above the 50.08 trigger after falling near its 10-week moving average. The stock mustered a small gain in the latest week, but did so in below-average trade.


On the plus side, buyers are still in control. SodaStream stock has an A- Accumulation-Distribution Rating. The stock is held by leading growth fund Fidelity OTC .


SodaStream is an Israeli maker of in-home soda machines. The machines, which start at around $80 and go to about $200, turn ordinary tap water into sparkling water, sparkling teas and sodas. SodaStream’s products are available on the company’s website or at leading retailers such as Bed Bath & Beyond (BBBY),Costco (COST), Wal-Mart (WMT) and Target (TGT).


From 2008 to 2011, the firm’s earnings skyrocketed from 4 cents a share to $1.62 a share. Over the same period, sales have more than doubled to $289 million from $139 million.


SodaStream will report Q4 and full-year 2012 results on Feb. 20 before the market opens. Its quarterly earnings are slated to rise 19% to 38 cents a share. Sales are expected at about $121 million, up 41% from a year ago.


For all of 2012, profit is expected to come in at $2.10 a share, up 30% from 2011. The estimate was recently lowered. Earnings for 2013 are expected at $2.70 a share, up 29% from 2012’s estimate.


Investors Business Daily: SodaStream Rallies After Fizzling From Secondary Entry

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